What is that thing? Innovative bus looks like a moving tunnel

A model of the Transit Elevated Bus is displayed at the Beijing International High-tech Expo on May 20. [Photo/VCG]

"Its carrying capacity is near that of a subway, but the cost of manufacturing and installing a TEB is much lower," Song said.

Manufacturing of the first TEB is underway and will be finished by July, after which it will be tried in Qinhuangdao.

Zhoukou, Henan province, plans to build a special 120-kilometer line that will allow the running of TEBs.

The company has also signed letters of intent with countries including Nigeria, Brazil, Mexico, Spain, Indonesia and Argentina.

It is expected that more than 400,000 TEBs will be needed in the next few decades, the company said.

Another feature of the TEB is that it is driven by electricity, which is more environmentally friendly than gasoline.

"It's indeed green and highly efficient in transiting passengers, but its operation needs supporting urban road systems," said Yin Yu, an engineer at China Road and Bridge Co.

Yin said that redoing the roads is not easy and involves demolishing existing houses.

"But it may be easy to popularize the TEB in new zones where most of the roads are wide and some are still under construction," he said.